Undergraduate Course: Economic analysis of corporate finance law (LAWS10153)
Course Outline
| School | School of Law |
College | College of Arts, Humanities and Social Sciences |
| Credit level (Normal year taken) | SCQF Level 10 (Year 3 Undergraduate) |
Availability | Available to all students |
| SCQF Credits | 20 |
ECTS Credits | 10 |
| Summary | This course aims to examine fundamental concepts and theories concerning corporate financing and investing decisions. It is an in-depth study of some aspects of corporate law and corporate finance. Some seminars have a strong theoretical focus and engage in detail with various theories explaining the interactions between various corporate constituencies. At the same time, the course as a whole has very significant practical relevance.
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| Course description |
Topics covered include:
First part:
1. An introduction to corporation law and economics (including theories of the firm)
2. Limited liability and shareholders' voting rights
3. Dividend policy and agency costs
Second part:
4. Nature and organisation of securities and derivatives markets
5. Introduction to the economic theories underpinning capital markets
6. Issuer disclosure and market transparency
7. Capital raising: IPOs and private equity
8. Capital raising: Crowdfunding and ICOs
9. Legal and economic analysis of market abuse
10. The market for corporate control
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Information for Visiting Students
| Pre-requisites | None |
| High Demand Course? |
Yes |
Course Delivery Information
| Not being delivered |
Learning Outcomes
On completion of this course, the student will be able to:
- Demonstrate a critical understanding of the main economic theories of the corporation and their implications on corporate finance.
- Compare and contrast the legal and economic approaches to fiduciary duties and the business judgement rule.
- Analyse the main economic functions of capital markets and of capital market instruments.
- Demonstrate a critical understanding of the main economic theories relating to the operation of capital markets and prohibition of market abuse.
- Be able to analyse critically primary and secondary source materials and use them to present a logical and well-structured oral or written argument.
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Reading List
The following titles offer background information on company law:
Reiner Kraakman et al., The Anatomy of Corporate Law, 2nd ed. (New York: Oxford University Press, 2009), chapters 3-6
John Lowry and Arad Reisenberg, Pettet's Company Law: Company Law and Corporate Finance, 4th ed. (Essex: Pearson, 2012), chapters 7 - 11
Specific materials and resources for each class will be indicated in the course handouts which will be made available on a weekly basis in advance of each class.
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Additional Information
| Graduate Attributes and Skills |
By the end of the course the students will:
1) develop their ability to work independently under fixed deadlines, seeking relevant advice and support when necessary
2) develop their ability to work constructively as a member of a group or team, assert leadership or follow instructions
3) participate effectively in seminars, workshops and discussions
4) develop their capacity of reflecting on the outcomes of individual research efforts with a view to identifying strengths and weaknesses and furthering their own learning
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| Keywords | Theory of the Firm; Shareholder Primacy; Stakeholders; Fiduciary Duties; Market for Coporate Control |
Contacts
| Course organiser | Dr Longjie Lu
Tel: (0131 6)50 2336
Email: Longjie.Lu@ed.ac.uk |
Course secretary | Ms Angie Jones
Tel:
Email: Angela.Jones@ed.ac.uk |
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